Headlines

Brazil's economy likely surged back to growth in the first quarter of the year, powered by record-breaking crops and solid crude oil output that more than offset the drag of subdued manufacturing activity, a Reuters poll of economists showed. Strong exports by commodities-producing sectors were seen adding to resilient private consumption in lifting gross domestic product (GDP), despite the negative effects of high interest rates and a worrying rise in government debt.

Brazil's newly introduced fiscal framework is stricter than they appear and will require a discussion of important spending cuts, Gabriel Galipolo, the executive secretary of the Finance Ministry, said on Tuesday, Reuters reported. Lawmakers in the lower house of Congress last week passed the main text of legislation that is set to replace the current spending cap, which has been breached several times in recent years to allow higher government spending.

German inflation eased to 6.1% in May following several months of declines, even as Europe's biggest economy registered another painful increase in food prices of nearly 15%, the Associated Press reported. Preliminary figures show that the annual inflation rate was lower than the 7.2% registered in April, the Federal Statistical Office said Wednesday. In February, it stood at 8.7%.

A growing number of Venezuela-related expropriation claims at U.S. courts pursuing Citgo Petroleum's assets surpass $20 billion, making difficult for the Houston-based refiner to compensate them all, but some payments can be negotiated, said on Wednesday the chief of a board supervising the company, Reuters reported.

Russia's economy grew 3.3% in April in annual terms, the economy ministry estimated on Wednesday, up from a revised 0.7% year-on-year contraction in March, Reuters reported. The ministry said the growth reading was in part due to the low base effect of last year. Russia's economy contracted 2.1% in 2022 as a whole and was under particular pressure in the spring as the West imposed sweeping sanctions against Moscow over its invasion of Ukraine. Read more.

The World Bank said on Tuesday it approved a $1 billion loan to Kenya to support its budget as East Africa's economic powerhouse confronts high debts and a weakening currency, Reuters reported. The lending will be done through an instrument called a Development Policy Operations (DPO) loan, which commits Kenya to instituting reforms aimed at creating fiscal space, improving agricultural competitiveness and improving governance.

EU tech chief Margrethe Vestager said on Wednesday she believed a draft code of conduct on artificial intelligence (AI) could be drawn up within weeks, allowing industry to commit to a final proposal "very, very soon," Reuters reported. Policymakers and many in industry have expressed concern about AI, and particularly content-creating generative AI such as ChatGPT, with some equating it to the risks posed by pandemics or nuclear war. Vestager said the U.S. and European Union should push a voluntary code of conduct to provide safeguards while new laws are developed.

An investor has raised a question with a CDS panel on whether a bankruptcy credit event has occurred in respect to Casino Guichard Perrachon, potentially starting the process for a payout on the company's credit default swaps, Reuters reported. The French retailer announced on Friday it entered court-backed talks with creditors.

Crisis-hit Go First Airlines on Tuesday (May 30) informed that its scheduled flight operations will remain cancelled till June 4, adding that a full refund will be issued to the passengers, The Hindu reported. Earlier flight operations were cancelled till May 30. The airline operator had recently filed for voluntary insolvency. The Directorate General of Civil Aviation (DGCA) last week advised Go First Airlines to submit a comprehensive restructuring plan for a sustainable revival of operations.

Jaypee Infratech, which is facing insolvency proceedings, on Monday said the company has deferred the approval of financial statements for the quarter and fiscal ended March 2023, as it has not been finalised in view of pending cases in the appellate tribunal. On March 7, the National Company Law Tribunal (NCLT) approved the resolution plan of Mumbai-based realty firm Suraksha Group to take over Jaypee Infratech.